India's plan to refarm spectrum hinges on army vacating about 55 MHz in the 1800-MHz band

NEW DELHI: India's plans to refarm spectrum, or redistribute airwaves that are held by incumbent mobile phone companies through auctions, will depend on its armed forces freeing up additional frequencies for commercial telephony.

An analysis by the telecom department has revealed that refarming cannot be executed in full in as many as 12 of the 22 regions or more than half the country, unless the armed forces vacate about 55 MHz of spectrum in the 1800 MHz band.

Earlier this week, the panel of minister headed by finance minister Pranab Mukherjee decided to decided to sell up to 13.75 MHz of spectrum in the 1800 MHz band in the upcoming auctions where companies whose permits were quashed by the Supreme Court, new entrants as well as existing operators can participate.

But prior to this, sector regulator Trai had suggested that only 5 MHz of spectrum be sold in the 1800 MHz band in the upcoming sale process and the remaining frequencies be set aside for refarming. Trai later revised its recommendations and said that up to 10 MHz of airwaves could be sold after setting aside sufficient airwaves for reframing.

The National Telecom Policy - 2012 that was unveiled last week and the Empowered Group of Ministers headed by Mukherjee had approved the proposal to refarm spectrum, which involves redistribution of airwaves in the 900 MHz band largely held by incumbents, and substituting it with frequencies in the 1800 MHz.

Trai had proposed that these frequencies be redistributed amongst all operators through auctions when mobile permits of incumbents come up for renewal beginning 2014. GSM telcos have vehemently opposed this and have warned that refarming of the 900 MHz band would lead to investments of over Rs 150,000 crore being made redundant.

According to the DoT's analysis, post the upcoming sale of spectrum, it will not have sufficient airwaves for refarming in more than half the country, including Delhi, Mumbai, Gujarat, Punbab, Haryana, UP (East & West), Rajasthanm, West Bengal, Himachal Pradesh, Bihar and J&K.

For instance, in the key circles of Delhi and Mumbai, the DoT will be left with only 5.9 MHz and 9.2 MHz airwaves respectively in the 1800 MHz band post the auctions, even as it would require 16 MHz of airwaves in both these metros to undertake refarming.

But, if the armed forces were to free up spectrum as scheduled, Mumbai will be the only region in the country which may not have sufficient airwaves to undertake refamring in full, the DoT's analysis adds.

The department's estimates also reveal that post refarming, the government will continue to have additional frequencies in the 1800 MHz band in all regions with the exception of Mumbai.

The armed forces vacating these airwaves is linked to the completion of the alternative (optic fibre) network that the DoT is building for the defence forces.

The armed forces had freed up 15 MHz 3G spectrum, which was sold during the 2010 auctions, and also vacated 15 MHz 2G spectrum, which had been allotted to those telcos whose licences were quashed by the Supreme Court earlier this year. The defence ministry has said despite their vacation of these airwaves, the DoT had so far failed to keep its part of the bargain.